Topic: Buy the DIP, and HODL! - page 149. (Read 122193 times)

The dip is characterized by a noticeable decline or fall in price of an asset which could either take place within a short or long period of time, a dip can be sudden it can as well take a long time which is not as considerably 2 years as you imply. Yeah waiting for a dip before making purchase can be a very wrong approach especially for a newbie that is meant to be accumulating Bitcoin without having anything to do with the market condition. However, combination of strategies can be good with a proper planning such that any one that is already accumulating Bitcoin with dca can as well buy the dip if it has been well figured out such that it will not affect your consistent dca and your various aspects  living expenses, as buying the dip give the opportunity of buying more quantity of Bitcoin with the same amount of money as when compared with buying from it previous high.

You are contradicting yourself and you don't fully understand what it means by DCA and buying at the dip.

The reality is that any investor that is accumulating bitcoin using DCA method to buy regularly weekly or monthly non stop, and he has built his emergency funds for 3-6 months and also have reserve funds, can also include buying at the dip to his budget should incase bitcoin price dips, but that does not mean that he is waiting for the price of bitcoin to dip before he buys, but he buys always with DCA.

DCA means using an amount maybe $10, $50, $100 or from your discretionary income based on your own case to buy bitcoin regularly weekly or monthly without skipping any one for 4-10 years. While buying at the dip is when an investor keeps his money in fiat and everyday, he is busy watching the chart and bitcoin price hoping to see a dip for him to be able to buy. The annoying thing with these set of investors who do not have enough Bitcoin and is waiting for the dip, always have their own price in which the want bitcoin to fall to be they will buy. So e of them will end up waiting till infinity without buying one Satoshi.

So there is nothing bad there if in your bitcoin journey, after two years or three when you have confidence in bitcoin and you have understand your cash inflow, which may/not have increased, you plan for the DOWNity and UPity of bitcoin price. However, a new beginner like you chiomaobi should only focus on using the DCA method to accumulate bitcoin in a long-term 4-10 years and above. Also don't forget that your emergency funds is very important for you to be able to keep accumulating more bitcoin weekly or monthly and hodli for long, if not you might sell of when it is not the right time due to unexpected emergency.

You also have to understand that not all Bitcoin investors will think like that, especially if each Bitcoin investor has a different amount of reserve funds each month. Investors who have the funds to buy Bitcoin in a certain amount will not think about accumulating more but they will immediately buy without having to wait for the price of Bitcoin to fall, especially if they do not plan to sell again in the near future. The DCA strategy is good, but it is mostly used by small investors who do not have enough reserve funds, while large investors and companies such as Blackrock will never wait for the price to fall if they want to buy Bitcoin.

So don't think that most Bitcoin investors will carry out their plans as you describe, because you also need to know that currently there are still investors who prefer to buy Bitcoin without caring about whether the price is going down or up. And they even often like to collect more Bitcoins without determining when they will sell the Bitcoins back into the market.

Actually I'm not disputing the fact that buying at dip is not good but the best way to go about it is only those investors who has been accumulating Bitcoin for some time now and also that have been into Bitcoin for long to utilize it and not just those beginners who just started there Bitcoin accumulation to reply on the dip, similarly to the point @JayJuanGee was saying because we all understand what dip is about and something that doesn't happen regularly in terms of Bitcoin price movement but instead we only witness some little correction which is very normal for a coin of that kind of potential but saying that it will regularly dip is not possible, and also dip is something that can just happen without people expecting so it should be an added opportunity for investors to utilize and add up more on there investment portfolio but dwelling on the dip will be totally poor investment planning because you could wait for a very long time.

Seeing from the situation that occurred and indeed the effect of a person's psychology that sometimes raises the aggressive side, it is possible that it can happen, but in this case I don't really agree if we leave the DCA that has been done because after all this could be an unexpected risk if you forget DCA as one of the main strategies that you always struggle with. But in this case we can compensate by continuing to do DCA but on the other hand we can also set aside a little of our money to do the situation by waiting for bitcoin to be dipped. This can still happen because after all in the management of our money we must have a fund post where it is intended for reserve funds or unexpected needs and if it is unused then the time is suitable for buying bitcoin on the dip then indeed this strategy can still be done in the end.
It's just that things like this depend on their respective perspectives so it's up to those who have money but I would be a little against when those who do do DCA and delay it just because they are waiting for the dip and not moving in the end because I think something like that is less worth it.

A long 10-year DCA futures plan for Bitcoin deposits can be followed on a relatively weekly or monthly basis, allowing for realism and solidifying holdings. Here various buying prices are combined and will show the average price up to the last point. Example: If depositing bitcoins at $100 per month, $1200 in 1 year and the average price will show a combination of different prices per month. $12,000 accumulates over 10 years and averages out at different monthly buying prices. Eventually you get a decent portfolio that accumulates more bitcoins by investing the same amount of money. However, the average value of Bitcoin tends to increase in contrast to the high price of Bitcoin, but the average price tends to decrease relatively due to the downward trend in price.

For new investors or those in the early stages of accumulating Bitcoin, sticking to a straightforward DCA approach is often more suitable than focusing solely on buying the dip strategy. DCA allows for consistent and manageable purchases based on available disposable income each week, regardless of the specific amount. This method helps in building a Bitcoin portfolio steadily over time without the need to time the market. It can be challenging to predict market dips accurately especially for new investors. Relying solely on waiting for dips may not always result in significant benefits, especially when investing a smaller portion of income. Sticking to a consistent DCA strategy can be a more reliable and straightforward approach for long-term Bitcoin accumulation.

Consistency is key when it comes to accumulating Bitcoin, especially for those who can't afford to purchase large quantities at once. By maintaining a regular DCA schedule you will be taking advantage of DCA reducing the impact of market volatility, and building a solid foundation in Bitcoin. Waiting for the perfect dip can lead to missed opportunities and a smaller portfolio. Instead using a combination of DCA and reserve funds for opportunistic purchases provides a good strategy. Reserve funds allow you to take advantage of market downturns while avoiding the risk of reducing your regular investment funds.

We all aware that buying the dip is a nice strategy, but relying on the dip alone is not smart at all expecially for am average man or a low coiner. Because as one is waiting for the dip alone he or she is just wasting time and same time missing out because the time his using to wait for the dip, would have help him to cover alot of gabs in his accummulation.

That's is the reason those that are interested in buying the dip should have a reserve funds while they keep DCAing, so that they can purchase the dip without affecting their DCAing. That's why when it comes to investing we should always try to plan ahead , in other to secure a better investment for ourselves.

And don't forget with DCAing one can also buy the dip .

Even if all investors are not fan of buying at a dip but that is simply because they didn't map out plans for it if not it's good to buy at a dip price even though you are DCAing because buying at a dip price gives you advantage to make more profits unlike continuous use of the DCA strategy. Take for instance you are using the DCA on weekly basis and a dip occurs immediately after your last DCA and before your next DCA the price regains it original state before the dip occured, haven't you missed out on the dip? sure you have and this is where reserved funds plays an important role because during DIPs your reserved funds will help you to buy in those periods of dips even though you are still DCAing. However, if you don't have reserved funds you can still just stick to your every week DCA because since you have long term investment plan, making good profits and owning huge portfolio can be achieved in the long run.

from the way I look at it, after I have laid out plans on ground for my DCA, if I receive an extra income or some sort of bonus from any source, it's iether I will use part to strengthen my emergency funds while i use the rest  to make a lump sum purchase since keeping it in fiat form and waiting for possible DIP before buying might put me in a position to likely spend it on unreasonable thing old i will keep it all for lump sum purchase, but even with that, i have to first off decide how long to wait for a DIP and make it too strict that I must not wait past that time regardless of what happen. But putting this two options into consideration, the best would still be to do lump some purchase once you've removed any fund from it, that's if it's even necessary to add up to your emergency fund.

Note that apart from the problem of an investors inability to knowing when exactly is the DIP, almost all investors would normally want to buy at the DIP price and it doesn't mean they have to go out of the plan or to do anything strange. As much as buying using the DCA methord helps to keep you consistent with your routine buys, a complementary approach that could add up pace to your accumilation is to also make provision for buying during the DIP buy that still requires that you set out special funds for such purpose which wouldn't work to well for someone that's just fresh to his bitcoin accumilation journey and that hasn't figured a lot of things out financially.

Not all investor might actually be a fan of buying the dip because probably they don't want  to get into some emotional  devastation as per being already used to dca and may intend sticking to it as not to be carried away and overly invest at the cause of buying the dip. Any investor that is consistent with his dca can as well benefit from buying the dip, I stick with DCA because it's something I h have gotten use to. I didn't want something that will take me out of my original plans because I have already programmed my income how to spend them so I don't run into any kind of troubles. Going out of the plan without completely prepared for it can be very detrimental but however for those who have this figured out such that it will not influence their other plans can maximize such opportunity without over doing it. but for people who hasn't made any provision before hand, it's best to continue with what they are already used to in order not to get into trouble.

There may be absolutely no need for a brand new investor, and maybe someone in their first few years of buying/acumulating bitcoin to employ buying the dip strategies rather than sticking with straight-forward and regular DCA (which may well not even be sticking with any particular amount of BTC, but instead figuring out how much BTC to buy each week from the amount of disposable income that he has for that particular week, whether that is $100 or $10 or some other amount).

Yet of course, there might be some psychological reasons to hold some money aside for buying the dip, but it may or may not end up paying off because we cannot rely  on dips actually happening or even happening to such an extent that it is even going to make much of a meaningful difference in a person's bitcoin journey, especially if the person might be new to investing and ONLY investing around 10% of his/her income so it could take a whole 10 years to have 1 years of income invested into bitcoin.. so it is difficult to understand and/or appreciate what value might have had come from buying the dip rather than just buying regularly and not changing behaviors based on factors that might be difficult to measure the extent to which there might have been any kind of advantage to straight-forward DCA.

On the other hand, any of us might come across periods in which we receive extra money for a variety of reasons.  Some people might receive bonuses two or more times a year or there could be other times in which extra money comes available, and surely there could be some thoughts about lump sum, buying the dip or just incorporating that extra money into DCA... and maybe if the extra money just gets used right away for BTC purchases, then that extra money also becomes just a part of the person's DCA system, so I am not even suggesting either choice is more preferable since these are the kinds of discretionary choices that each of us has to make in terms of how aggressive or how whimpy that we want to be in terms of our ongoing bitcoin accumulation -

and there is no correct answer, even though there surely may well end up being a difference between the person who invests $100 per week into bitcoin for 10 years and the person who invests $10 per week into bitcoin for 10 years (because the person who invested $100 per week would have had accumulated 10x more bitcoin than the person who invested $10 per week into bitcoin), but there still is no correct answer regarding what might have been the better choice even though a lot of us may well appreciate having had accumulated 10x more bitcoin, but there may well might have been trade-offs along the way in terms of accumulating 10x more bitcoin, too.. such as maybe the person who invested $10 per week rather than $100 per week ended up having a happier life because he was spending that extra $90 per week on things that ended up contributing to his ongoing current happiness rather than his delayed his happiness. 

Each of us has to figure out and make our choices, and surely we could use some DCA charts to see how $10 per week versus how $100 per week would have had played out in terms of the quantity of bitcoin accumulated during the past 10 years, for example.

And there are investors who made buying at the dip as there Bitcoin accumulation strategy and what if the market did not dip will they keep waiting? It will be better they use the DCA strategy and also buying the dip strategy together so that the DCA strategy can help them accumulate more Bitcoin at different price level weekly or monthly and also buy when the market is at dip with the help of their reserve fund. But if the investor is still a low coiner the buying dip strategy alone won't be a good Bitcoin accumulating strategy.

No one knows when the decline will occur, but everyone has the opportunity to buy it where they must have reserve funds which they prioritize to buy when the price of bitcoin falls. If they don't set aside spare money to buy at dips, of course they will miss the moment to buy when a decline is occurring. Along with the accumulation journey with dca it becomes very good to apply because every time we can buy on dips.

Apart from that, we are planning a long-term investment journey in Bitcoin, so prepare your money as best as possible so that you don't miss out on DCA purchases. As you said, it is quite appropriate if you are able to set aside money for a reserve fund, of course it is quite the right step because you can buy bitcoin when the price is corrected by 10% or more. Meanwhile, buying aggressively when prices fall can be combined with DCA+ buying at dips. This is also classified as aggressive buying and without realizing it, we often do that.

When it come to accumulation of Bitcoin, we should always keep our DCAing constant irrespective of the market conditions. Expecially those of us that can't afford to purchase large quantities of bitcoin. Because if one have the mindset of always waiting for the dip before accumulating he or she will only endup missing out  or having small quantities of bitcoin in their portfolio.

That's why is better to save some funds (which is known as reserve funds) in case any dip occurs one can purchase the dip with the use of reserved funds, and he or she can choose to spread it out or go all in with the reserve funds like lump-sum purchases.

I agree with you that buying at the dip should be done with some unexpected funds that comes our way which we don't have plan for, and whether they come or not, our regular DCA continues. What I do is that whenever, I am given a bonus at work or traveling allowance, training allowance, or some incentives for motivation at work. I keep such funds without touching it so that if it happens that bitcoin price dips, I can take advantage of the dip and buy more. And if it happens that I don't have any extra funds apart from my monthly income, my regular DCA is what I do and focus on more weekly.

we are specifically discussing Bitcoin investment, and long-term holding is a crucial strategy in this context. Bitcoin's volatility and price fluctuations make short-term holding risky, and long-term holding provides a greater potential for accumulation, profit, and weathering price downturns. In the context of Bitcoin investment having a long-term mindset is essential to ride out the market's ups and downs and benefit from the asset's potential for long-term growth. By holding for the long term, investors can reduce the impact of short-term price fluctuations and increase their chances of success in the Bitcoin market.

That comment hardly makes any sense.

You have whatever budget that you have, and you have to figure out how you are going to invest based on the budget that you have and also based on your other individual 9 factors, which happens to include how many BTC that you might have had already accumulated, and for sure the more BTC that you have accumulated, then the more luxury you will have to wait for buying dips rather than just buying BTC regularly and as soon as your money comes in.


Either you have additional capital or you don't.

If you earn some kind of income and the income keeps building up becuae you are waiting to buy the dip, then that is a choice that you have.


If you happen to have some assets (such as stocks or property or bonds or something like that), and you might want to choose to consider selling some of that and buying bitcoin, but you don't necessarily need to sell such other assets, but the selling of some other assets could be a form of capital that you are optionally able to generate.

Another thing could be that you receive a bonus or you inherit money or you win the lottery or you rob a bank (I am not advocating criminal activities), so there could be various ways that you might come upon a lump sum of capital that you could decide to buy bitcoin right away with all or part of it or you might choose to allocate some of that capital towards buying the dip and/or allocating it towards DCA purchases... You have discretion in those cash management regards, and surely there can be advantages to having capital or coming across capital, but there is no need to presume that anyone has any extra capital that goes beyond his/her regular monthly income (and even monthly income can have a considerable amount of variance and even expenses can have a considerable amount of variance... and the existence of such variance contributes towards variance in discretionary income that anyone might have).


DCA works so well because it can be tailored to the level of aggressiveness that any of us would like to employ, and surely once we start to accumulate a decent size of BTC stash, we might want to consider if we might want to modify the way that we do DCA including incorporating buying the dip and/or how we might consider the employment of lump sum purchases of BTC in those times that we might come accross extra cash that we have to decide how we are going to spend, invest and/or save it.

In the sense of their success, they made dip purchases several times and never delayed them, but unfortunately I can't do that, all I can do is apply DCA once a month regardless of the price, I will keep buying, this is my own way of commitment to accumulate bitcoin, not that I don't want to buy Dip yesterday but in terms of finance I'm not ready because fiat is not available, of course at the beginning of the month I will buy again no matter what the price is.

Emergency funds cannot be used in all situations, as the name applies it is used during severe and emergency situations, our emergency funds is not taking the duty of reserve funds. Emergency funds only help the investor avoid real life uncertainties like; Job loss, Death of family member,etc and enable continual accumulation.
Emergency, Discretionary funds are needed by investor as he invests in Bitcoin, DCAing or lump sum is choice of which the investor chooses from the one he can keep up with and be consistent.